1

When you buy or sell stock with an online broker when are the trading fees (approx. $7 or $10) deducted from your available balance? Is it when the order is placed? At the end of the month?

  • 5
    What country and what broker ... it varies. – Dheer Dec 23 '15 at 15:32
  • 2
    As @Dheer says, it varies. I think most brokerages deduct any commissions and fees when the order is filled (not placed, an order can be placed and filled months apart), but there are some where a flat monthly fee gives you a certain number of trades, etc. – blm Dec 23 '15 at 19:41
3

Typically the fees are charged when the order is executed.

The only catch I have ever ran into is when an order is partially executed. A good-till-cancel order that gets executed in several blocks over multiple days may get charged a separate commission for each day (but typically not each block).

If this is a simple brokerage account, you could avoid the whole question by using robinhood.com, which charges no commissions or maintenance fees.

1

As others have said, it depends on the brokerage firm.

My broker is Scottrade. With Scottrade the commission is assessed and applied the moment the order is filled. If I buy 100 shares of XYZ at $10 a share then Scottrade will immediately deduct $1007.02 out of my account. They add the commission and fees to the buy transaction. On a sale transaction they subtract the commission and fees from the resulting money. So if I sell 100 shares of XYZ at $11 a share I will get 1,092.98 put into my account, which I can use three business days later.

  • How exactly do they add/subtract to the transaction? Do they give you less shares or for example trade for higher rate? – jayarjo Jun 12 '18 at 18:59

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.